India's third largest realty firm Unitech Ltd, it has lowered debt by 40% in last two and half years. It would further reduce the borrowing in coming quarters from operational cash flows.
Mr. Sanjay Chandra, MD, Unitech Ltd, “We have reduced our gross debt from Rs.9,000 crore in March 2009 to about Rs. 5,500 crore 2011, December. The trend will continue in the next 2-3 quarters after that we may not need to reduce further. Besides gradual reduction in debt, Our company would infuse more funds on construction of ongoing projects for fast execution of about 80 projects pan India.
Mr. Sanjay Chandra, also said, ''We invested Rs, 1,300 Cr on construction last fiscal - 2010-11 We do not have any concern on the debt front. Operational performance is leading to continuous reduction in debt and not asset sales. Our company's debt-equity ratio was in a comfortable position at 0.46% and is very low compared to peer Indian real estate groups. We have 9 malls under construction and we have land for another 4 malls. We will develop these malls. Our firm would invest up to Rs. 3,000 Cr the next 5 years for this".
Unitech Ltd has cut debt by about Rs. 400 crore in the first half of this fiscal (2011-12). In the last fiscal (2009-10), the company had raised Rs. 4,500 Crore from QIP (Qualified Institutional Placement) of equity shares, out of which nearly Rs. 2,200 crore was utilised to cut debt.
During the first half of current fiscal, Unitech Ltd has sold about 37 lakh sq. ft of area, mostly residential, worth Rs. 2,088 crore. The company has launched projects comprising 60 lakh sq. ft of saleable area and more projects are in pipeline.
Mr. Sanjay Chandra, MD, Unitech Ltd, “We have reduced our gross debt from Rs.9,000 crore in March 2009 to about Rs. 5,500 crore 2011, December. The trend will continue in the next 2-3 quarters after that we may not need to reduce further. Besides gradual reduction in debt, Our company would infuse more funds on construction of ongoing projects for fast execution of about 80 projects pan India.
Mr. Sanjay Chandra, also said, ''We invested Rs, 1,300 Cr on construction last fiscal - 2010-11 We do not have any concern on the debt front. Operational performance is leading to continuous reduction in debt and not asset sales. Our company's debt-equity ratio was in a comfortable position at 0.46% and is very low compared to peer Indian real estate groups. We have 9 malls under construction and we have land for another 4 malls. We will develop these malls. Our firm would invest up to Rs. 3,000 Cr the next 5 years for this".
Unitech Ltd has cut debt by about Rs. 400 crore in the first half of this fiscal (2011-12). In the last fiscal (2009-10), the company had raised Rs. 4,500 Crore from QIP (Qualified Institutional Placement) of equity shares, out of which nearly Rs. 2,200 crore was utilised to cut debt.
During the first half of current fiscal, Unitech Ltd has sold about 37 lakh sq. ft of area, mostly residential, worth Rs. 2,088 crore. The company has launched projects comprising 60 lakh sq. ft of saleable area and more projects are in pipeline.
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